Bangkok: The State Enterprise Policy Office (SEPO) is set to propose a comprehensive restructuring plan for eight state enterprises to the State Enterprise Policy Council (SEPC), with an imminent decision on whether three of these entities should be dissolved, merged, or continue operations with new strategies.
According to Thai News Agency, SEPO is recommending adjustments to the age limits for members of state enterprise boards, suggesting a range from 65 to 70 years, and extending the CEO term limit to 65 years. Independent directors would be limited to serving a maximum of nine years. This proposal, aimed at aligning with contemporary trends, will be submitted to the SEPC as part of efforts to overhaul eight state enterprises for accelerated recovery.
Mr. Thippee Wattanakul, the Director of SEPO, revealed the operational plan for 2027, highlighting the need to amend qualifications for board members and senior executives to better align with current standards. The proposed age limit for state enterprise board members mirrors that of prosecutors and judges, with provisions for health certificate submissions to ensure capability. This flexibility is intended to address concerns about age-related asset declarations and board service reluctance.
For senior executives or CEOs, the proposal extends the age limit from 60 to 65 years. Independent directors would be restricted to a maximum of nine consecutive years in office, with the board chairman required to be an independent director. The SEPO acknowledges the need for further discussions, considering the balance between financial sustainability and societal benefits of state-owned enterprises.
Mr. Thipdee further stated that SEPO is actively addressing organizational rehabilitation for eight state enterprises, which include the Agricultural Marketing Organization, the Warehouse Organization, the Market Organization, the Police Printing Press, Royal Thai Police, the Playing Card Factory, Excise Department, the Liquor Organization, Excise Department, Bangkok Dock Company Limited, and MCOT Public Company Limited. SEPO is preparing to submit a proposal to the SEPC for evaluating whether these entities should be restructured, dissolved, or merged.
During the SEPC meeting, a decision will be proposed for three of the eight state enterprises, exploring options such as dissolution or mergers. SEPO recognizes that, although some enterprises like MCOT have shown recovery, the television industry as a whole is currently struggling, with significant financial losses across many stations.
SEPO also notes that reducing the government's shareholding to below 50%, as demonstrated successfully by Thai Airways, has led to enhanced management flexibility and financial improvements. However, this strategy may not be suitable for many other state enterprises. For instance, the Bangkok Mass Transit Authority's transition to electric buses has cut costs by 45%, reducing fuel and maintenance expenses. Conversely, the State Railway of Thailand continues to face annual losses, necessitating careful evaluation of how to capitalize on land along railway lines to boost financial performance.